Cost Accounting
- Accounting
Allocating services department cost to producing departments
ALLOCATION OF SERVICES DEPARTMENT OVERHEAD TO BENEFITING DEPARTMENTS: The expenses of services department must ultimately be transferred to producing departments…
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Basis of Charging Indirect Expenses to Producing Departments
Apart from Expenses, Indirect Expenses such as power, light, rent, and depreciation of factory, when shared by all departments, can…
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Charging Repairs and Maintenance Costs to Products
Repairs and Maintenance costs: With respect to repairs and maintenance costs, it is essential (1) to establish control over the…
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How should Manufacturing Supplies be treated in Cost Accounting?
Charge to Inventories: When closer control of manufacturing supplies is required or when more than one department uses certain manufacturing…
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Difference Between Direct And Indirect Materials
Indirect Materials and Factory Supplies. Distinguishing incorrectly between direct and indirect materials (the latter being part of overhead) has the…
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How To Categorize Direct Departmental Overhead Costs
Direct departmental overhead costs: Inasmuch as overhead is allocated to all products, a lax or incorrect classification results in direct…
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What Are Producing Department And Service Department
What are producing department and service department? Division of the factory into separate, interrelated, and independently governed units is important…
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What Is Departmentalization Of Factory Overhead
The concept of DEPARTMENTALIZATION: Departmentalization of factory overhead means dividing the plant into segments called “departments” or “cost centers” to…
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When Should Overhead Rates Of A Factory Be Changed
Overhead rates may turn out to be incorrect or out dated because of misjudgments regarding estimated overhead or anticipated activity.…
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How Are Over or Underapplied Overhead Treated
Disposition of Over or Underapplied Overhead: Because of its importance, the analysis of the over or underapplied overhead figure is…
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